Various financial institutions, international initiatives, standard setters, and regulatory bodies have developed their own approaches to green finance. The diversity of approaches and definitions across the financial sector makes it difficult to assess...
See More +Various financial institutions, international initiatives, standard setters, and regulatory bodies have developed their own approaches to green finance. The diversity of approaches and definitions across the financial sector makes it difficult to assess overall progress. This is further constrained by data availability, which limits the rigor of the analysis of existing green finance flows. A comparison of the current supply of private sector green finance and the global demand by country would allow for the development of clear action points to close any gaps. Building on the work of the Group of 20 (G20) Green Finance Study Group, the IFC Climate Policy team has developed a new approach to assess and track green finance, focusing on the banking sector, to understand the current status of green lending and provide recommendations on how to better align different approaches to measuring green finance. This will allow for analysis on a broader scale, which could result in better policies to mobilize additional green finance.
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